Hi everyone,
I started thinking about the business strategy framework created by Victor Cheng, Marketing, Company, Customer and Products.
I was a little bit confused about the scope of the customers and products.
Should they be about the customers and products we have for our client or it means general customers and products? If they belong to the company, I feel like they can be mentioned within the company section?
You help is highly appreciated.
:)
The Business Situation Frame Work from Victor Cheng is structured into 4 categories:
1. Customers- That are customers inside the industry we are evaluating that the client or client competitor serves (we can evaluate how they are segmented and who the client is positioned themselves to reach vs who they are not reaching, that their competitors might be reaching etc.)
2. Company- That is the clients- (everything relevant to the case situation)
3. Competitors- whoever is considered competition to the client (you could benchmark competencies, to management, to financials against the client's company)
4. Product - The client’s products (now you can compare or benchmark offerings versus competitors here).
Depending on the case or situation you are evaluating, you can restructure this as:
Internal and External factors and break down as shown below:
Internal -
Company - look inwards at every aspect that is relevant (products, financials etc.)
External-
Market or Industry analysis (MACRO level trends)
Competitor Assessment (financials, products, competencies etc.)
Hope this helps?
What I always do is first, segment customer into a,b,c,d..., find the most questionable sub-seg, e.g the trend of the sub-seg or percent of it in the whole is very different from others. Second, I'll dive down in that sub-seg and analyze in that sub-seg, what competitors offer in the market and what my client is capable of offering, e.g lower price than competitors, differentiation, etc. Through cross-reference and cross-examination to find out if client and offer something more competitive than others in the sub-seg. if client can do, logically, it will be successful. Otherwise, it is an end.
